alstry (35.84)

Trade Wars Breaking Out All Over The World

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As money runs out around the globe, nations must become more aggressive to generate employment and revenues for citizens. Compounding this problem is a growing depletion of the world's fresh water in important population centers like Mexico City and China.

Last week we saw lots of stories about this issue in a variety of media outlets. This morning it is making headlines as China and the U.S. are bantering back and forth......France wants to impose carbon tarriffs on imports.....and now the issue is spreading to South America.

THE HAGUE -- Argentina argued Monday at the U.N.'s highest court that Uruguay "flagrantly breached" international law by authorizing the construction of two pulp mills on the river that separates the two countries.

One of the mills has already been built and Argentina's chief representative at the International Court of Justice, Susana Ruiz Cerutti, called it "a bad mill in a bad place."

She told judges the mill that turns eucalyptus trees into pulp, the base ingredient for paper, already is pumping pollution into the waters of the River Uruguay and releasing foul-smelling gas into the air close to an Argentine tourist town.

Unless we restructure, economic stress will rise around the world. Massive debt obligations to Zombie banks will consume funds that otherwise would have gone to purchase goods and services. Conditions will continue to deteriorate as assets are simply parked and shuttered such as the reference to Ghost Ships in Singapore a previous blog and now rising commercial vacancy rates and crashing rents.

From an unfinished shopping mall in Elk Grove to the ghostly quiet office parks of South Placer, the slump that has overtaken commercial real estate could rival the meltdown in the housing market.

Across the Sacramento region, vacancy rates have soared while rents and property values have plummeted, leaving many landlords struggling to pay their mortgages.

We are still at the beginning of the Zombulation process. Handing out free money will be a temporary pain reliever, but will only serve to aggrevate the structural defect of too much debt suffocating declining revenues.

As the desperation intensifies, you should continue to see nationalism and aggressive behavior intensify......with military and troop build ups around the world.....we are setting the stage for a very volitile situation.

THIS IS WHAT HAPPENS TO A COUNTRY THAT RUNS OUT OF MONEY....imagine the effect if similar action was taken to reduce our deficit on Washington, D.C.

BELGRADE, Serbia -- Serbia will have to lay off about one-fifth of its government employees -- 14,000 people -- to meet conditions set by the International Monetary Fund to receive more financial aid, the country's finance minister said Monday.

Finance Minister Diana Dragutinovic said Serbia aims to cut spending before the government resumes its talks with the IMF on Oct. 20.

As millions of jobs are lost....few are being created....we are going to have to find some way to feed and occupy the population....a good start will be to financially structure the masses to deal with the change.

NEW YORK -- Drugmaker Eli Lilly & Co. says it will eliminate thousands of jobs and reorganize into five business units in an effort to slash costs and speed up development of potential new drugs.

The Indianapolis company says it will reduce its work force to 35,000 by the end of 2011. It has about 40,500 now, according to Thomson.

And to think I was happy about the Ravens winning yesterday! Back to the gloom of the economy...although another down day...which I'm sure will be reversed this week when the retail numbers come out. It will be spun in a positive light to send the market up :) Blows but I'll take the down day for now haha

It is not doom and gloom.....simply a massive change. You cannot fire millions of workers and slash the wages of tens of millions and not expect change....MASSIVE CHANGE.....especially when lifestyles and expenses are geared to an old system.

Is it despair....absolutely for many....doom and gloom....nope, simply change from consuming a lot to consuming very little.

It is not doom and gloom.....simply a massive change. You cannot fire millions of workers and slash the wages of tens of millions and not expect change....MASSIVE CHANGE.....especially when lifestyles and expenses are geared to an old system.

Is it despair....absolutely for many....doom and gloom....nope, simply change from consuming a lot to consuming very little.

Plastics maker Myers Industries Inc. said Monday that it will close two of its manufacturing facilities by the end of the year as part of its efforts to better align its capacity and cut operating costs.

And yes, I know my consumption habits have changed enormously because of my home being so underwater. Although I'm likely to foreclose on my home, I'll still have to pay for all the legal bs that's to come. Not only that, but my credit is going to be destroyed. A small price to pay for 100K worth of negative equity in my home. It's truly a sad, sad time...and this is happening everywhere.

Record foreclosures are to come. The market is way ahead of itself. Although I did think about it this weekend, deflation is waaay uglier than inflation, and way more dangerous. They need to induce inflation(the lesser of evils) which is likely why the market is going so high. Asset infation isn't good, but definitely the lesser of the 2 evils. The gov't's problem will be controlling inflation with an exit strategy that I highly doubt they have. I don't foresee this going down very smoothly.